Why Texas Instruments Rocketed Higher Today

By Billy Duberstein – Apr 23, 2026 at 2:08PM ESTKey PointsTexas Instruments trounced revenue and earnings expectations. The company also guided well above analysts' estimates for the current quarter.The company's industrial and data center chip segments are booming. Shares of Texas Instruments (TXN +18.06%) rallied 19.5% on Thursday as of 12:38 p.m. EDT, sending shares to a new all-time high. The embedded and analog semiconductor sector, which Texas Instruments leads, has been in a longer-than-usual downturn since the post-pandemic crash that began in 2023. However, last night's outstanding earnings report and guidance seemed to indicate that the long downturn is over and the up cycle has a ways to run. ExpandNASDAQ: TXNTexas InstrumentsToday's Change(18.06%) $42.68Current Price$278.99Key Data PointsMarket Cap$215BDay's Range$259.31 - $284.1252wk Range$152.73 - $284.12Volume19MAvg Vol7.4MGross Margin57.02%Dividend Yield2.35% TI trounces expectations In the first quarter, Texas Instruments showed revenue growth of 18.7% to $4.83 billion, while earnings per share rallied 31.3% to $1.68 per share. Both figures handily beat expectations. Management guided for continued strength in the current quarter, projecting revenue of $5.0 billion to $5.4 billion and EPS of $1.77 to $2.05, relative to analyst estimates of $4.87 billion and $1.57, respectively. Texas Instruments appears to be benefiting from multiple tailwinds all at once. After a multi-year industrial and auto chip down-cycle, these sectors appear to be bouncing back. In addition, AI data centers are increasingly using lots of analog, embedded, and power chips. The data center division was up a whopping 90% year-over-year, while industrial chips were up 30%, and auto chips were up mid-single-digits. The data center segment only accounted for about 9% of TI's revenue in 2025, but with growth like that, it is sure to become a more significant driver of growth going forward. In even better news, TI is also winding down a period of intense capital spending, having completed the heaviest stage of its multi-year investment plan to build out U.S.-based manufacturing in Texas. As a result, capital expenditures were down, and free cash flow rocketed higher. Over the past 12 months, TI has generated $4.4 billion in free cash flow, up 154% from the $1.7 billion generated in the prior 12-month period. Image source: Getty Images. Texas Instruments breaks out As you can see from the chart above, the blockbuster earnings report catapulted TI's stock above the range in which it's traded over the past five years. While the stock currently looks expensive, at around 43 times this year's earnings estimates, it seems like a good bet TI will outperform those estimates, which should be revised higher throughout the year.Read NextApr 23, 2026 •By The Motley Fool TeamStock Market Today (LIVE): Texas Instruments Back on the Radar?; Starbucks Rewards Revamp Shows WinsApr 22, 2026 •By Motley Fool TranscribingTXN Q1 2026 Earnings TranscriptApr 20, 2026 •By Matt Frankel, CFPBest Tech ETFs for 2026 and How to InvestApr 20, 2026 •By Parkev Tatevosian, CFATexas Instruments Stock Analysis: Buy or Sell This Semiconductor Stock Before the Huge Update?Apr 16, 2026 •By Tony DongBest Semiconductor Stocks for 2026 and How to InvestApr 16, 2026 •By Motley Fool YouTubeTexas Instruments Shows How Dividend Growth Can Help Investors Recover Faster After Big Stock DeclinesAbout the AuthorBilly Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.TMFStoneOakStocks MentionedTexas InstrumentsNASDAQ: TXN$278.99(+18.06%)+$42.68*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.